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3 years ago

Shoe-leather costs arise when higher inflation rates induce people to __________.

Business

1 answer:

S_A_V [24]3 years ago

3 0

Answer:

D - Hold less money

Explanation:

Inflation is the persistent increase in the general prices of goods and services over a period of time.

During inflation period, nobody wants to hold more of cash because the value of money gets depreciated as inflation increases (prices of goods increase).

For example, shoe-leather costs increases when there is an increase in inflation and it makes more economic sense to purchase shoe-leather as it preserves the value of money.

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Quality risk refers to the chance that: a.The project relies on developing new or untested technologies. b.The well-being of the

GrogVix [38]

Answer:

The answer is c.The firm's reputation may suffer when the product becomes available.

Explanation:

Quality risk are potential losses due to failure to meet set quality standards.

7 0

3 years ago

What does the price elasticity of supply measure? Click or tap a choice to answer the question. how income affects spending the

Zolol [24]

You didn't put all the alternatives, but I understand economics and I know exactly that concept.

Supply price elasticity measures how price changes impact the supply of goods and services. If the elasticity of supply is elastic, it means that supply is very sensitive to price changes. If the price goes down even slightly, the supply of goods will fall sharply. If the price increases, even if little, the offer will increase much. Conversely, if supply is inelastic, price changes will have little effect on supply for the good. If the price goes down, there will be little impact on the supply of the good. If the price increases, there will also be little impact on supply.

4 0

3 years ago

If Kindle e-readers and Nook e-readers are substitutes, a higher price for Nooks would result in a(n) ______.

lara31 [8.8K]

Answer: a) increase in the demand for Kindles.

Explanation: the substitution effect for substitute goods gives that, if the price of good A rises, the demand for good B rises. Since a substitute good is a good that can be used in place of another, they are goods that a consumer perceives as similar or are comparable, in such a way that having more of one good causes the consumer to desire less of the other good. From the viewpoint of price, and given that consumers always prefer to spend less in instances where two goods are substitutes, it then means that Kindle can be used and preferred in place of Nooks given that the price of Nooks had gone up. Therefore, increasing the price of Nooks causes a corresponding increase in the demand for Kindles.

3 0

3 years ago

Fitch Supply Services received $1,000 cash from a customer; the amount was owed to the business from the previous month. What is

Solnce55 [7]

Answer:

Decrease the accounts receivable account in assets section of balance sheet by $1,000

Increase the cash account in assets section of balance sheet by $1,000

Explanation:

The Accounting equation for any entity is represented by the following equation:

Assets= Equity + Liability

When the entity receive any amount from customer in respect of the any credit sale made to him, the account receivable in the asset section will be decreased by the that amount and the cash section in the asset section will be increased by that amount.

In this case, Fitch supply services shall

Decrease the accounts receivable account in assets section of balance sheet by $1,000

Increase the cash account in assets section of balance sheet by $1,000

7 0

3 years ago

A project has cash flows of −$161,900, $60,800, $62,300, and $75,000 for Years 0 to 3, respectively. The required rate of return

Degger [83]

Answer:

Therefore, the internal rate of return is lower than the expected return, for this the project must be rejected

Explanation:

Solution

Given that

The cash flow of a project consists of the following amount from year 0 to 3 = −$161,900, $60,800, $62,300, and $75,000

The rate of return required = 13%

Now,

Let the Internal rate of return be y%

Thus,

At internal rate of return, the value of present inflows is the same as the value of present outflows.

So,

Internal rate of return = Value of present inflows = Value of present outflows

=161900 =60800/1.0y +62300/1.0 y ^2 + 75000/ 1,0 y^3

Therefore, y = internal rate of return 10.41%

7 0

3 years ago